Ratan Tata, the chairman of Tata Group, has asked the firms of one of India's largest business groups to review their targets in the new year amid a economic slowdown.

He also warned against taking a extremely cautious approach and forgo economic opportunities in the ongoing slowdown. He said in his annual message to employees that group companies would "review and moderate" the predictions of future and make their expansion plans in accordance with the current realities.

"However, we must not be so risk-averse that we lose out on the interesting opportunities that may present themselves in various geographies," he added.

He said that individual companies will have to aim for a reduction in manufacturing and process costs in order to improve margins in order to compensate for higher input costs. He pointed out that there is economic growth and consumer demand in the Indian economy at a time when many other countries are facing severe downturn.

The Indian economy has seen an unprecedented rise in inflation, political conflicts, and policy uncertainties, which have affected economic growth. He believes that the Indian economy could see a robust recovery if the inflation remained in check and there is adequate money supply in the economy.

In his annual message, he gave due credit to Cyrus Mistry, the announced successor of the group. He said that he believes that Mistry has the ability to lead the group in the coming years.